China’s tourism recovery will remain volatile in 2022, analysts say

Fitch Ratings expects China’s tourism recovery to remain volatile due to travel restrictions related to a resurgence of Covid-19 cases.

China.- While new Covid-19 cases have decreased in China in recent days, analysts don’t see much chance of a recovery for tourism anytime soon. According to Fitch Ratings, the sector will remain volatile throughout this year due to travel restrictions.

Fitch noted that the government’s Covid-19 guidelines have helped drive a recovery in domestic tourism but that any surge in cases would likely weigh on tourism activity.

Analysts said: “Leisure travel has recovered rapidly as travel preferences shifted towards short-distance, high-quality vacations and family entertainment, such as theme parks.” 

It added that in the scenic spots market, which generally targets non-local tourists, the recovery has been much slower.

“Scenic spots have faced higher operational volatility because the destinations are more affected by cross-provincial travel restrictions,” analysts concluded.

From today, the quarantine requirement for visitors to Macau have been reduced from 21 to 14 days. Restrictions for those entering Macau via Zhuhai, in the neighbouring province of Guangdong could soon be eased as no new cases have been detected since March 19.